Five tips to help you make the most of investing

Newbie investors, listen up! 📣

Authored on
26 Apr 2024
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Category
Getting started
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Read time
  3 minute read

So, you've taken the plunge and started your investing journey. Props to you for making the first step!  

Now, you might be wondering, ‘what’s next?’. Well, you’re in luck, because we’ve hand-picked five investment tips to keep that money-making momentum moving strong

If you’re a total newbie to investing, don’t worry! You can check out our investing for beginners guide to help get you started on the right foot. 🦶 

Make it regular 📅

Find yourself with some spare cash at the end of each month? Cracking! You can set up a direct debit to automatically move that money from your current account to your Dodl investment account. We like to think of it as paying your future self! 

Even if it’s just £25 a month, it can accumulate over time! Of course, if you’ve got a bit more cash lying around, you have the option to make a lump sum deposit every now and then. 💰 

You can even take automation to the next level and set up regular investments in the Dodl app! Simply choose the shares or funds you want to invest in each month, and let your money do the work for you. Plus, you might even save on fees! 

 

2. Don’t buy too many things 🛒 

We get it, investing can be exciting! It’s like being a kid in a sweet shop, wanting to try everything. But remember, quality over quantity. You’ve probably heard about ‘diversifying your portfolio’ which basically means making sure that you’ve got a spread of different investments. Now, this is important, but don’t go overboard! 🛶 

The more assets you invest in means more work to keep track of them, and with most providers, the more fees you pay. But there’s good news for Dodl customers, as there are no dealing charges, so the latter problem won’t affect you lucky lot. Just be weary that each fund has its own management fees, and with Dodl, these vary from 0.05-0.45% of your investments, annually.  

3. But make sure you buy enough 🥚 

On the flip side, don’t put all your eggs in one basket. Investing everything in one thing is risky business. It’s a good idea to aim for a balanced portfolio, not only across different funds or shares but also across different investing areas. Dodl makes it super simple to invest in a variety of sectors, via the themed investments. 🌍 

The right balance and the amount of assets you want to invest in depends on your comfort level with risk, so take some time to do some research and find what works best for you.

4. Are you in the right account? 💼 

Double-check your investment account to make sure it’s the right fit for you. Most beginners opt for an ISA due to its tax advantages. If you started with a general investment account and you haven’t used your ISA allowance yet, perhaps make sure you do the latter first! 

The investments you can make are exactly the same. The only big difference is you can only invest up to £20,000 in an investment ISA, tax-free. A general investment account is limitless in terms of what you can put in, but it’s stripped of tax perks. But if this is your first leap into investing, the annual £20k ISA limit should be enough!  

If you’re thinking about buying your first home, a lifetime ISA might be a great option with the lovely 25% government bonus, up to £1,000 a year. 🏡 

And don’t forget about your pension – it’s never too early to start thinking about your retirement! Now, it’s likely that you might want to build up a savings pot in an ISA first, particularly if you’re not yet on the housing ladder or have something specific you’re saving for.  

But it’s worth thinking about whether you can spare any money now to top up your pension pot. And remember, you can split your money across different types of accounts if you want to save for different things. 💰 

5. Have a plan 📜 

Just like you wouldn’t set off on a road trip without a map of some kind, having an investment plan can make your journey smoother. You don’t have to conduct in-depth analysis, but maybe ask yourself some key questions: Why am I investing and what are my goals? What kind of investments do I want to make? How comfortable am I with risk?  

Having a clear plan will help you stay on track and make informed decisions along the way. 

 

So, there you have it! Here are you five tips to help keep the investing momentum going strong. Remember, investing is a marathon, not a sprint. Take your time, do your research, and most importantly, enjoy the journey! 

 

🔔 Always remember, the value of your investments can go down as well as up. Dodl doesn’t give advice, so if you’re unsure about investing, it’s always best to speak to a financial adviser. ISA, LISA and pension rules apply. How you're taxed will depend on your circumstances, and tax rules can change. 

 


It's important to know

You have to be a UK resident for tax purposes to open an account with Dodl.

The past performance of investments isn't an indicator of their future performance and their value can go down as well as up. This means you could get back less than you originally invested. 

Dodl doesn’t offer any advice so if you’re not sure about the risks involved with investing, you should speak to a suitable financial adviser. 

How you're taxed depends on your circumstances, and tax rules can change in future.

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